Ayala Land (ALI) Q4 2024 earnings summary

Executive summary

• Net income rose 15% year-over-year to PHP 28.2 billion, exceeding the target of 2x GDP growth.

• Consolidated revenues reached a record PHP 180.7 billion, up 21% year-on-year and surpassing the previous high in 2019.

• Growth was broad-based across property development, leasing, hospitality, and service businesses, with services segment posting significant growth, particularly in net construction.

• Strong balance sheet maintained with a net gearing ratio of 0.73:1 and improved current and interest coverage ratios.

Financial highlights

• Property development revenues grew 22% to PHP 112.9 billion, led by a 23% rise in residential and 34% in commercial/industrial lots.

• Leasing and hospitality revenues increased 9% to PHP 45.6 billion, with shopping centers and offices both up 9%, and hotels/resorts up 11%.

• Service businesses surged 57% to PHP 18 billion, driven by external construction contracts and net construction up 98%.

• EBIT margin at 33%, within the 30%-35% target range, slightly down from 34% in FY 2023.

• CapEx reached PHP 85 billion, mainly for property development and estate build-out.

Outlook and guidance

• 2025 targets include PHP 95 billion CapEx, with 37% for residential, 25% for estates, and 23% for leasing/hospitality.

• Property development launches set at PHP 100 billion (PHP 80 billion residential, PHP 20 billion commercial/industrial lots).

• Strategic launches in high-demand, low-inventory areas, with 70% of new residential launches in the premium segment.

• Aim to sustain bottom line growth at two times GDP, with pre-sales expected to grow at a similar rate.

• Continued focus on premium segment and horizontal projects, with cautious but aggressive launch plans and expansion of leasing assets.